WE'VE MOVED!
We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co
We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co
Options
Silent Partner Expectations Bar/Restaurant
Slacker13
subscriber Posts: 1
What should a silent investor expect for fully funding a new bar and restaurant?
I pitched my first sports bar idea to an investor and they said yes immediately. The deal was that they remain silent, they fund 100% of the start-up costs for a 25% stake in the company.
I felt I was very lucky to get the first person I pitched this deal to say yes but with that said I had a 4 inch thick business plan that was extremely thorough and proved that I know the business very well.
I am now ready to pitch a second bar idea. This is on a bigger scale and will require a $800,000 investment and I am not sure my 25% approach was even correct the first time.
What are some common silent partner investment scenarios?
It was suggested by a new partner for this venture that the investor gets the following:
$800,000 invested
8% interest per year on investment paid quarterly ($16,000 per quarter)
8% of net profits until investment is paid off (paid annually)
5% continuing net profits paid annually
Balloon payment after year 8
Any help is much appreciated.
Thank you
I pitched my first sports bar idea to an investor and they said yes immediately. The deal was that they remain silent, they fund 100% of the start-up costs for a 25% stake in the company.
I felt I was very lucky to get the first person I pitched this deal to say yes but with that said I had a 4 inch thick business plan that was extremely thorough and proved that I know the business very well.
I am now ready to pitch a second bar idea. This is on a bigger scale and will require a $800,000 investment and I am not sure my 25% approach was even correct the first time.
What are some common silent partner investment scenarios?
It was suggested by a new partner for this venture that the investor gets the following:
$800,000 invested
8% interest per year on investment paid quarterly ($16,000 per quarter)
8% of net profits until investment is paid off (paid annually)
5% continuing net profits paid annually
Balloon payment after year 8
Any help is much appreciated.
Thank you
Sign In or Register to comment.